About Lesson
A Summary of Client’s Rights Under the Fair Credit Reporting Act
The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records).
Here is a summary of Client’s major rights under the FCRA.
* Client must be told if information in his/her file has been used against her. Anyone who uses a credit report or another type of consumer report to deny Client’s application for credit, insurance, or employment – or to take another adverse action against him/her – must tell him/her, and must give him/her the name, address, and phone number of the agency that provided the information.
* Client has the right to know what is in his/her file. Client must request and obtain all the information about Client in the files of a consumer reporting agency (Client’s “file disclosure”). Client will be required to provide proper identification, which may include your Social Security Number. In many cases, the disclosure will be free.
You are entitled to a free file disclosure if:
– A person has taken adverse action against Client because of information in Client’s
credit report;
– Client is the victim of identity theft and place a fraud alert in Client’s file;
– Client’s file contains inaccurate information as a result of fraud;
– Client is on public assistance;
– Client is unemployed but expects to apply for employment within 60 days.
– Client is also entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.ftc.gov/credit for additional information.
* The three nationwide credit reporting companies have set up one website, toll free telephone number, and mailing address through which Client can order his/her free annual report.
To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281
* Client has the right to ask for a credit score. Credit scores are numerical summaries of
your credit-worthiness based on information from credit bureaus. Client may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but Client will have to pay for it. In some mortgage transactions, Client will receive credit score information for free from the mortgage lender.
* Client has the right to dispute incomplete or inaccurate information. If Client identifies
information in his/her file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.ftc.gov/credit for an explanation of dispute procedures.
* Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.
* Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.
* Access to Client’s file is limited. A consumer reporting agency may provide information about you only to people with a valid need — usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.
* Client must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about Client to his/her employer, or a potential employer, without Client’s written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to https://www.consumer.ftc.gov/topics/credit-and-loanswww.ftc.gov/credit.
* Client may limit “prescreened” offers of credit and insurance Client may receive based on information in Client’s credit report. Unsolicited “prescreened” offers for credit and insurance must include a toll-free phone number Client may call if Client chooses to remove Client’s name and address from the lists these offers are based on. Client may opt-out with the nationwide credit bureaus at 1-888-5-OPTOUT (1-888-567-8688).
* Client may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, Client may be able to sue in state or federal court.
* Identity theft victims and active duty military personnel have additional rights.
For more information, visit www.ftc.gov/credit.
For more information, including information about additional rights, go to www.ftc.gov/credit or write to: Consumer Response Center, Room 130-A, Federal Trade Commission, 600 Pennsylvania Ave. N.W., Washington, D.C. 20580.